This rate product released from Investors Group is definitely causing talk in the mortgage world. Without doubt it is a great rate, but beware it comes with many restrictions and guidelines to qualify as follows:
- You can’t refinance your home over the next 3 years.
- You can’t Port this mortgage to a new property.
- The penalty if you sell your house will be up to 3 times the 3 month interest penalty that a standard variable rate comes with.
- If you convert to a fixed rate during the next 3 years, you do not know for certain what your fixed rate will be. Since IG isn’t a big player in the Mortgage world, the conversion rate will likely be higher than with other wholesale lender.
- The mortgage will be registered as a collateral charge for 100% of the property value, so you can’t even add a line of credit if you needed to use the equity in your home over the next three years.
- Upon renewal in 3 years, you won’t be able to transfer your mortgage to a new lender without incurring legal fees since no one takes transfers if they are registered as a collateral charge.
- You need to have a decent investment portfolio and a high credit score in order for them to approve you since they are looking at cross selling you on their investments and insurance products, so they can compensate for the “lost leader” that this mortgage product really is.
Reiterating this fact, yes it is a great rate, but based on all the restrictions and guidelines, are you really saving in the end? That is for you to decide.
Contact Robert Clancy today to discuss your mortgage needs!